EX-99 9 exhibit991.htm EXHIBIT 99.1 Exhibit 99

Exhibit 99.1


  

AMERICAN SOUTHWEST MUSIC DISTRIBUTION, INC.

    
  

               (A DEVELOPMENT STAGE COMPANY)

    
  

PRO FORMA CONSOLIDATED BALANCE SHEETS

    
  

                          SEPTEMBER 30, 2005

       
             
           

American Southwest

 

American Southwest

 

GL Energy and

 

Pro Forma

  

Music Distribution, Inc.

 

Music Distribution, Inc.

 

Exploration, Inc.

 

Adjustments

  

Pro Forma

             

               Assets

    

 

       

Current assets

            

  Cash

$

4,180

 

$

                         -

 

$

5,269

A

 

$

9,449

  Officer's loan receivable

 

5,269

  

                         -

  

(5,269)

A

  

                                    -

  Prepaid expenses

 

4,368

 

 

                         -

 

 

                  -

  

 

4,368

             

    Total current assets

 

13,817

 

 

                         -

 

 

0

  

 

13,817

             

Property and equipment

            

  (net of accumulated

            

    depreciation of $18,546)

 

71,442

 

 

                         -

 

 

                  -

  

 

71,442

             

Other assets

            

  Music catalog (net of

            

    accumulated amortization

            

      of $0)

 

4,216,000

  

                         -

  

                   -

   

4,216,000

  Deferred transaction costs

 

183,900

  

                         -

  

(183,900)

B

  

                                    -

  Deposit

 

                                    -

  

62,500

  

(62,500)

D

  

0

  Loan origination fees (net of

           

                                    -

    accumulated amortization

           

                                    -

      of $2,500)

 

12,500

 

 

                         -

 

 

                   -

  

 

12,500

             

    Total other assets

 

4,412,400

 

 

62,500

 

 

(246,400)

  

 

4,228,500

             

    Total assets

$

4,497,659

 

$

62,500

 

$

(246,400)

  

$

4,313,759

             

      Liabilities and Stockholders' Equity

          

Current Liabilities

            

  Accounts and accrued expenses

 

 

          

    payable

$

66,028

 

$

47,065

 

$

 

 

 

$

113,093

  Advances from shareholders

 

                                    -

  

218,822

  

(62,500)

D

  

156,322

  Notes payable

 

438,600

 

 

                         -

 

 

 

 

 

 

438,600

             

     Total current liabilities

 

504,628

 

 

265,887

 

 

(62,500)

  

 

708,015

             

     Total liabilities

 

504,628

 

 

265,887

 

 

(62,500)

  

 

708,015

             

Stockholders' equity

            
        

534

C

   

  Common stock

 

4

  

37,382

  

(37,386)

C

  

534

  Preferred stock

 

                                    -

  

                        -

      

                                    -

        

36,852

C

   

  Additional paid-in capital

 

4,294,733

  

2,687,795

  

(183,900)

B

  

6,835,480

  Accumulated deficit

 

(301,706)

 

 

(2,928,564)

 

 

 

 

 

 

(3,230,270)

             

     Total stockholders' equity

 

3,993,031

 

 

(203,387)

 

 

(183,900)

  

 

3,605,744

             

     Total liabilities and stockholders'

           

       equity

$

4,497,659

 

$

62,500

 

$

(246,400)

  

$

4,313,759

             

See the accompanying notes to unaudited pro forma consolidated condensed financial statements

    






  

AMERICAN SOUTHWEST MUSIC DISTRIBUTION, INC.

      
  

               (A DEVELOPMENT STAGE COMPANY)

      
  

     PRO FORMA CONSOLIDATED BALANCE SHEETS

      
  

         NINE MONTHS ENDED SEPTEMBER 30, 2005

      
  

                                             AND  

         
  

         INCEPTION THROUGH SEPTEMBER 30, 2005

      
               
             

Inception

          

American Southwest

 

Through

 

American Southwest

 

GL Energy and

 

Pro Forma

 

Music Distribution, Inc.

 

September 30,

 

Music Distribution, Inc.

 

Exploration, Inc.

 

Adjustments

 

Pro Forma

 

2005

    

 

 

 

 

  

 

    

Revenue

$

                                     -

 

$

                        -

 

$

-

 

$

                                     -

 

$

                    -

               

Expenses

              

  Mineral rights

 

                                     -

  

                        -

  

-

  

                                     -

  

85,830

  Impairment

 

                                     -

  

                        -

  

-

  

                                     -

  

20,000

  General and administrative expenses

78,214

  

28,782

  

-

  

106,996

  

323,507

  Professional fees

 

83,500

 

 

45,700

 

 

-

 

 

129,200

 

 

2,740,394

               

Total expenses

 

161,714

 

 

74,482

 

 

-

 

 

236,196

 

 

3,169,731

               

Loss from operations

 

(161,714)

  

(74,482)

  

-

  

(236,196)

  

(3,169,731)

Interest expense

 

22,746

 

 

11,035

 

 

 

 

 

33,781

 

 

67,562

               

Net loss

$

(184,460)

 

$

(85,517)

 

$

0

 

$

(269,977)

 

$

(3,237,293)

  

 

            

See the accompanying notes to unaudited pro forma consolidated condensed financial statements

      







AMERICAN SOUTHWEST MUSIC DISTRIBUTION, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE PROFORMA CONSOLIDATED CONDENSED FINANCIAL STATEMENTS


A

Reflects repayment of loan to CEO David Michery


B

Reflects reclassification of deferred transaction costs incurred prior to merger to additional paid-in capital


C

In connection with the merger the common stock of American Southwest Music Distribution, Inc. ("the Company") and GL Energy, Inc. has been adjusted to reflect the recapitalization transactions.


After giving effect to a reverse stock split and the merger, the Company's total issued and outstanding common shares will be approximately 18,699,230.  The Company will perform a reverse stock split at the rate of 1 share for every 35 shares of common shares outstanding, and approval of an increase in the authorized common stock, $.001 par value from 2,857,142 to 100,000,000 shares.


Accordingly, the Company's previously total 18,699,230 of issued and outstanding commons shares will become 534,264 shares after the reverse stock split, and based upon a $.001 par value be reflected as a $534 common stock amount.  Additional amounts that are part of the above transactions have been recorded to additional paid-in capital.


D

Reflects reversal of intercompany loan between GL Energy and American Southwest Music Distribution, Inc.